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Index Focus - 7 December 2017

Global equities are positive, helped by stateside Tech stabilisation as investors await more on US tax reform and Brexit negotiations. Positive Eurozone GDP and solid UK house Prices, is also helping while traders look to tomorrow’s key US jobs report for their latest cues on the US economy. Germany’s DAX outperforms on EUR weakness.

The UK UK 100 is just above break-even thanks to demand for a host of defensives (RB, VOD, BT, DGE, GSK) overpowering the drag from a stronger GBP (off recent lows) on the likes of BATS/ABF, lower oil/stronger USD (RDSB/BP) and RIO (stronger USD). Germany’s DAX is being led higher by VW (Nov sales), Vonovia, Lufthansa, DTel (US buybacks), RWE and Linde, with meaningful declines for just BASF (UBS downgrade).

The UK Index 100 has paused around 7355 before a break higher or lower. The DAX 30 may have topped out at 13085. Dow Jones Futures are in a falling channel from recent highs. Gold has breached $1260, extending its recent reversal.

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Where next?
  1. Will the index fall towards lows of 7,279? or;
  2. Will the index rise towards highs of 7,473

The UK Index 100 has paused around 7355 before a break higher or lower. Bullish pennant?

  • Watch levels: Bullish 7,370, Bearish 7,340

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Uptrend
  • Potential support: 7345, 7320, 7280
  • Potential resistance: 7370, 7385, 7417, 7473

Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.

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Where next?
  1. Will the index fall towards lows of 12,810 or;
  2. Will the index rise to record highs of 13,192?

The DAX 30 may have topped out at 13085 with a duo of resistance and long upper tails.

Watch levels: Bullish 13,050; Bearish 13,015

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 13015, 13000, 12990, 12965, 12950, 12900, 12855
  • Potential resistance: 13035, 13085, 13120, 13160, 13192

Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.

Click here for help with Support & Resistance Click here for help with technicals

Where next?
  1. Will the index fall towards lows of 23,920? or;
  2. Will the index rise to fresh highs of 24,536?

Dow Jones Futures are in a falling channel from recent highs.

  • Watch levels: Bullish 24,180; Bearish 24,135

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 24135, 24105, 24100, 24085, 24000, 23920
  • Potential resistance: 24180, 24211, 24233, 24275, 24300, 24330

Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.

Click here for help with Support & Resistance Click here for help with technicals

Where next?
  1. Will Gold fall towards lows of $1,205? or;
  2. Will Gold rise towards highs of $1,357?

Gold has breached $1260 extending its recent reversal. All prior lows since Jly offer potential for support if weakness persists.

  • Watch levels: Bullish $1261, Bearish $1251

Solid Green line
Possible support

Solid Red line
Possible resistance

  • Trend: Downtrend
  • Potential support: 1252, 1245, 1229, 1205
  • Potential resistance: 1260, 1270, 1275, 1290

Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.

Click here for help with Support & Resistance Click here for help with technicals

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This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

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